Professional Engineers Board SingaporeThe Examination Committee of the Board, chaired by Board member Er. Dr Chiew Sing Ping, held 3 meetings in 2019 and oversaw the conduct of the

1

Professional

Engineers Board

Singapore

For Financial Year

professional engineers board singapore 52 Jurong Gateway Road #07-03 Singapore 608550

1

▪ President and Members of the Board 2

▪ Mission, Key Objectives and Functions 4

▪ Registration and Licensing 5

▪ Disciplinary Inquiries 7

▪ Activities of the Board 8

▪ Financial Statements

2

President

Er. Ho Siong Hin

Members of The Board

From left to right Er. Au Kow Liong Er. Chan Ewe Jin Er. Chan Jacqueline

From left to right Er. Chew Keat Chuan Er. Dr Chiew Sing Ping Er. Chua Tong Seng

From left to right Er. Khew Teck Fook, Edwin Er. Lau Joo Ming Er. Dr Lock Kai Sang

3

Members of The Board ( Cont’d)

From left to right

Er. Neo Tee Boon Er. Shahrom Bin Mohamed Ariff (From 1 January 2018 to 22 April 2019) Er. Tan Shu Min, Emily

From left to right

Er. Dr Wong Liang Heng, Johnny Ar. Chan Li Chen, Angelene

From left to right

Er. Chua Tong Seng Er. Yogeeswaran s/o Sivasithamparam Er. Teo Chor Kok

From left to right Er. Ly Paul

Ms. Wo Mei Lan

Registrar

Er. Tay Chiou Peng, Raymond

Er. Chin Jen Chyi

4

Mission To safeguard life, property, and welfare of the public by setting and maintaining high standards for registering professional engineers, and by regulating and advancing the practice of professional engineering. Key Objectives

• To maintain an internationally acceptable standard of assessment which emphasizes quality academic education, examination, and practical experience that ensures only competent individuals are accepted for registration as professional engineers.

• To maintain a process that ensures professional engineers demonstrate a high standard of professional development, and conduct and ethics that meet the expectations of clients and consumers.

• To develop responsible self-governance of the profession through judicious administration of the Act and Rules on professional conduct and ethics.

• To coordinate and facilitate cross-border mobility of qualified professional engineers. Functions

• To keep and maintain a register of professional engineers, a register of practitioners and a register of licensees.

• To hold or arrange for the holding of such examinations as the Board considers necessary for the purpose of enabling persons to qualify for registration under the Professional Engineers Act.

• To approve or reject applications for registration under the Professional Engineers Act or to approve any such applications subject to such restrictions as it may think fit to impose.

• To establish and maintain standards of professional conduct and ethics of the engineering profession.

• To promote learning and education in connection with engineering, either alone or in conjunction with any other professional body.

• To hear and determine disputes relating to professional conduct or ethics of professional engineers or to appoint a committee or arbitrator to hear and determine those disputes.

• To license corporations, partnerships and limited liability partnerships which supply professional engineering services relating to any of the prescribed branches of professional engineering work in Singapore.

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• Generally to do all such acts, matters and things as are necessary to be carried out under the provisions of the Professional Engineers Act.

Registration of Professional Engineers

In year 2019, the Board conducted 38 professional interview sessions for 169 applicants while a total of 103 candidates were registered as professional engineers during the year. Table 1 shows the number of new professional engineers registered in the last 5 years.

Table 1: Number of Newly-Registered Professional Engineers by Year

Branch of Engineering No. of Professional Engineers Registered

2015 2016 2017 2018 2019

Civil 51 55 57 59 60

Electrical 20 28 21 35 26

Mechanical 15 13 21 21 16

Chemical - - 63 78 1

TOTAL 86 96 162 193 103

As at 31 December 2019, there was a total of 4208 professional engineers on the register of professional engineers and a total of 2545 (60.5%) professional engineers on the annual register of practitioners. Table 2 shows the breakdown of the number of registered professional engineers and practitioners in the 4 main branches of engineering (namely, civil, chemical, electrical and mechanical). Table 2: Number of Registered Professional Engineers as at 31 December 2019

Branch of Engineering

Total No. of Registered Professional Engineers

No. of Practitioners (Professional Engineers in Each Branch with

Practicing Certificates)

Number Percent (%) Number Percent (%)

Civil & Structural

2068 49.1 1356 65.6

Electrical 956 22.7 600 62.8

Mechanical 943 22.4 523 55.5

Chemical 160 3.8 61 38.1

Others1 81 1.9 5 6.2

TOTAL 4208 100 2545 1 Others include Aeronautical, Electronic, Industrial, Information Technology, Manufacturing, Marine, Naval Architecture and Production.

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Registration of Specialist Professional Engineers

As at 31 December 2019, there was a total of 416 professional engineers on the register of specialist professional engineers and a total of 373 (89.7%) of them had practicing certificates. Table 3 shows the breakdown of the number of registered specialist professional engineers. Table 3: Number of Registered Specialist Professional Engineers as at 31 December 2019

Specialised Branch of

Engineering

Total No. of Registered Specialist Professional

Engineers

No. of Specialist Professional Engineers in Each Branch with

Practicing Certificates

Number Percent (%) Number Percent (%)

Geotechnical 113 27.2 98 86.7

Amusement

Ride 18 4.3 17 94.4

Lift and escalator

97 23.3 90 92.8

Crane 59 14.2 52 88.1

Access

Platform 66 15.9 61 92.4

Pressure

Vessel 50 12.0 43 86.0

Protective Security

13 3.1 12 92.3

TOTAL 416 100% 373

Licensing of Corporations and Partnerships As at 31 December 2019, there was a total of 229 licensed corporations, partnerships and limited liability partnerships on the Board’s register of licensees. Table 4 shows the breakdown of the licensees. Table 4: Number of Licensees as at 31 December 2019

Type of Corporations/Partnerships No. of licensees

Limited corporations 197

Unlimited corporations 4

Multi-discipline/Limited liability partnerships 28

TOTAL 229

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In 2019, Investigation Committees appointed by the Board completed inquiries on three complaint cases against professional engineers. Following the inquiries, two cases were referred to a Disciplinary Committee while a warning letter was issued to the other professional engineer.

In 2019, a Disciplinary Committee appointed by the Board completed two formal inquiries. At completion of the inquiries, one of the professional engineers was suspended from practice for a period of 2 years and another was suspended for a period of 6 months and fined $10,000.

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Board Meetings The Board held a total of 11 meetings in the year 2019. Professional Engineers Registration Examinations The Examination Committee of the Board, chaired by Board member Er. Dr Chiew Sing Ping, held 3 meetings in 2019 and oversaw the conduct of the Practice of Professional Engineering Examination (PPE) and the Fundamentals of Engineering Examination (FEE). The Practice of Professional Engineering Examination was conducted on 7 May 2019 for civil, electrical and mechanical engineering. The Fundamentals of Engineering Examination was conducted on 17 September 2019 for chemical and civil engineering, 18 September 2019 for electrical engineering and mechanical engineering. Summaries of the results of the two examinations are as shown in Tables 5 and 6 below. Table 5: Results of PPE 2019


PPE 2019

No. of Candidates

No. of Passes Pass Rate

Civil 248 54 21.8%

Electrical 176 47 26.7%

Mechanical 113 32 28.3%

Overall 537 133 24.8%

Table 6: Results of FEE 2019


FEE 2019

No. of Candidates

No. of Passes Pass Rate

Chemical 10 10 100%

Civil 322 122 37.9%

Electrical 147 58 39.5%

Mechanical 157 91 58.0%

Overall 636 282 44.2%

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Amendment to the Professional Engineers Rules The PE Rules were amended and came into effect in April 2019. Companies which obtained a valid licence from PEB are allowed to indicate details on professional engineering services in the specific branches. Form 6 of the Second Schedule of the PE Rules was amended to allow a corporation to explicitly specify the branch(es) of engineering that it is authorised to provide in the licence issued. ASEAN Mutual Recognition Arrangement on Engineering Services The Board had been involved in the implementation of the ASEAN Mutual Recognition Arrangement on Engineering Services. In this regard, the ASEAN Chartered Professional Engineer (ACPE) Monitoring Committee Singapore, which had been authorised by the Board, continued to process applications submitted by professional engineers for registration as ACPEs. For the year 2019, 11 applications for registration as ACPEs were approved. As at 31 December 2019 the number of ACPEs from Singapore on the ACPE Register is 289. PEB had also authorised 1 ACPE (from Myanmar) as Registered Foreign Professional Engineer (RFPE). PEB Seminar 2019 The inaugural PEB Seminar 2019 was held on 4 October 2019, which was attended by 470 participants. At the seminar, Er. Raymond Tay, Registrar of PEB, shared on lessons learnt from contravention cases. Er. Colin Yip, Associate and Building Digital Leader from ARUP Singapore spoke on transformative technologies in digital design/VDC/IDD and their application in projects. Er. Dr Nasim Shahzad, Group Executive Chairman of Meinhardt Singapore, gave his insights on the considerations in setting up and operating a private engineering consultancy in Singapore and venturing abroad. PEB Day of Dedication 2019 The Professional Engineers Board (PEB) Day of Dedication (DOD) 2019 was held at the Mandarin Oriental Singapore on 9 November 2019 where over 240 PEs pledged to continue their services to society and uphold high standards of professional engineering practice. The event was graced by Mr Desmond Lee, Minister for Social and Family Development and Second Minister for National Development. The Day of Dedication is held to recognise new PEs as well as the contribution of PEs to Singapore’s built environment and the community. Ninety-six new professional engineers (PEs) were presented with certificates of registration for the chemical, civil, mechanical and electrical engineering branches. Twenty-one Specialist PEs were registered in five branches of specialised professional engineering, namely, (i) lift and escalator engineering, (ii) crane engineering, (iii) pressure vessel engineering, (iv) geotechnical engineering, and (v) protective security engineering. In addition, 10 ASEAN Chartered Professional Engineers (ACPEs) received their certificates of registration, while 12 outstanding graduates from the NUS and NTU undergraduate and postgraduate engineering programmes were presented with Gold Medal Awards.

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PEB Book Launch - Professional Engineers’ Contribution to Nation Building A new book, “Engineers as Urban Systems Innovators”, was launched at PEB’s Day of Dedication 2019. The book captures the key principles of building a liveable and sustainable Singapore with the focus on the efforts by PEB’s Distinguished Professional Engineer Award recipients. The book, a joint publication by PEB and the Centre for Liveable Cities (CLC), was unveiled by Mr Desmond Lee, Minister for Social and Family Development and Second Minister for National Development. Er. Ho Siong Hin, President of PEB; Er. Khoo Teng Chye, Executive Director of CLC; fellow distinguished professional engineers, including Er. Cham Tao Soon, Er. Chang Meng Teng, Er. Liew Mun Leong and Er. Tan Ee Ping, were present at the book launch. The past recipients for the Distinguished Professional Engineer Award also included Er. Tan Gee Paw and Er. Dr Shahzad Nasim. PEB and four universities sign a Memorandum of Understanding PEB signed a Memorandum of Understanding (MOU) with four universities, i.e. Nanyang Technological University Singapore (NTU), National University of Singapore (NUS), Singapore Institute of Technology (SIT) and Singapore University of Technology and Design (SUTD). Under the MOU, these local universities will conduct the Fundamentals of Engineering Examination (FEE) for their students. This will facilitate more local undergraduates to take the FEE in their final year of studies. The arrangement will give universities the flexibility to adjust the schedule of the FEE in order for it to fit into the school curriculum. Previously, the undergraduates would have to take the mass FEE organised by the PEB and most undergraduates would only take the FEE after they have graduated from the universities. Innovative Professional Engineer Award Two PEs, Er. Tan Kee Chong and Er. Teh Poh Suan, were presented with the inaugural Innovative Professional Engineer Award by Minister Desmond Lee. The award is for PEs exemplifying professionalism through innovativeness and entrepreneurship in delivering the outcomes of projects in which they were involved, and raising the standing and reputation of the profession. In his speech, Minister Lee lauded Er. Tan Kee Chong for his work with industry stakeholders to test and integrate data loggers in various types of mobile cranes which allows logging of key operational data, including whether safety devices have been duly activated. This enables crane owners to take measures to curb unsafe practices before they cause workplace incidents, and optimise crane deployment and fleet management. Er. Teh Poh Suan’s team piloted a solar leasing business model, where private sector vendors co-funded the capital costs of solar panel deployment. The private vendors recouped their initial investment by leasing solar energy to building occupants at a discount from prevailing energy tariffs.

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PEB Scholarships and Gold Medals In 2019, the Board awarded scholarships of $6,000 each to 8 engineering undergraduates from National University of Singapore (NUS) and 8 engineering undergraduates from Nanyang Technological University (NTU). The Board also awarded Gold Medals to NUS and NTU graduates in civil, electrical and mechanical engineering, comprising 6 Gold Medals to BEng. graduates and 6 Gold Medals to MSc graduates. Annual Appreciation Dinner The Board held an appreciation dinner on 25 November 2019 to thank professional engineers who had rendered voluntary service to PEB. About 100 professional engineers who were members of the various committees of the Board and the professional interview panels attended the dinner.

PROFESSIONAL ENGINEERS BOARD

FINANCIAL STATEMENTS

For the financial year ended 31 December 2019

Audit Alliance LLP

Public Accountants and Chartered Accountants Singapore


FINANCIAL STATEMENTS


Contents Page

Statement by the Board‟s Management 1

Independent Auditor‟s Report 2 - 4

Statement of Comprehensive Income 5

Balance Sheet 6

Statement of Changes in Accumulated Fund 7

Statement of Cash Flows 8

Notes to the Financial Statements 9- 28

PROFESSIONAL ENGINEERS BOARD (Constituted under the Professional Engineers Act (Chapter 253)) STATEMENT BY THE BOARD’S MANAGEMENT For the financial year ended 31 December 2019

In our opinion:

(a) the accompanying financial statements of Professional Engineers Board (the “Board”) are drawn up in accordance with the provisions of the Professional Engineers Act (Chapter 253) (the “Act”) so as to give a true and fair view of the financial position of the Board as at 31 December 2019 and the financial performance, changes in accumulated fund and cash flows of the Board for the year ended on that date;

(b) at the date of this statement, there are reasonable grounds to believe that the Board will be able to pay its debts as and when they fall due; and

(c) nothing came to our notice that caused us to believe that the receipts, expenditure, and investment of monies and the acquisition and disposal of assets by the Board during the financial year have not been in accordance with the provisions of the Act.

The Board’s Management has, on the date of this statement, authorised these financial statements for issue.

On behalf of the Board’s Management

Ho Siong Hin President

Tay Chiou Peng Registrar Singapore,

1

27 April 2020

2

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF


(Constituted under the Professional Engineers Act (Chapter 253))

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Professional Engineers Board (the “Board”) which

comprise the balance sheet as at 31 December 2019, the statement of comprehensive income, statement of

changes in accumulated fund and statement of cash flows of the Board for the year then ended, and notes to

the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements are properly drawn up in accordance with the

provisions of the Public Sector (Governance Act) Act 2018, Act 5 of 2018 (the “Public Sector (Governance)

Act”), the Professional Engineers Act (Chapter 253) (the “Act”) and Statutory Board Financial Reporting

Standards (“SB-FRS”), so as to give a true and fair view of the balance sheet of the Board as at 31 December

2019 and of the financial performance, changes in accumulated fund and cash flows of the Board for the year

ended on that date.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities

under those standards are further described in the Auditors’ responsibilities for the audit of the financial

statements section of our report. We are independent of the Board in accordance with the Accounting and

Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants

and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit

of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in

accordance with these requirements and the ACRA Code. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Board’s Management is responsible for the other information. The other information comprises of the

Statement by the Board’s Management included on pages 1 but does not include the financial statements and

our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not and will not

express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

identified above and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this

auditor’s report, we conclude that there is a material misstatement of this other information, we are required

to report that fact. We have nothing to report in this regard.

Responsibility of the Board’s Management for the Financial Statements

Board’s management is responsible for the preparation of financial statements that give a true and fair view

in accordance with the provisions of the Professional Engineering Act (Chapter 235)) (the “Act”) and

Statutory Board Financial Reporting Standards (“FRS), and for devising and maintaining a system of

internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against

loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded

as necessary to permit the preparation of true and fair financial statements and to maintain accountability of

assets.

3

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF



Responsibility of the Board’s Management for the Financial Statements (continued)

In preparing the financial statements, the Board‟s Management is responsible for assessing the Board‟s ability

to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the Board‟s Management either intends to liquidate the Board or to cease

operation, or has no realistic alternative but to do so.

The Board‟s Management responsibilities include overseeing the Board‟s financial reporting process.

Independent Auditor’s responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor‟s report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional

scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that

is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the Board‟s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by Management Committee.

• Conclude on the appropriateness of Management Committee‟s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to

events or conditions that may cast significant doubt on the Board‟s ability to continue as a going

concern. If we conclude that a material uncertainty exists, we are required to draw attention in our

auditors‟ report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor‟s report. However, future events or conditions may cause the Board to cease to

continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a

manner that achieves fair presentation.

We communicate with the Board‟s Management regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

27 April 2020



STATEMENT OF COMPREHENSIVE INCOME


The accompanying notes form an integral part of these financial statements.

5

Note

2019

S$

2018

S$

Income

Company Licensing Fees 114,042 110,708

Examination Fees 502,050 460,600

Grant Income 269,941 -

Renewal Fees 527,450 523,100

Registration Fees 48,400 86,450

Interest Income 4 124,506 103,059

Other Income 5 38,628 26,141

Total Income 1,625,017 1,310,058

Less: Expenditure

Audit Fee 3,980 4,280

Annual and Appreciation Dinner 17,104 19,185

Amortisation – Right of Use Assets 55,982 -

Computer Services and Software 84,436 141,455

Certificate Presentation Ceremony 37,195 42,146

Distinguished PE Awards 86,606 -

Depreciation 10,283 4,661

Examination Expenses 179,334 155,179

Honorarium to Board Members 58,705 61,200

International Liaison, Accreditation and Overseas Visit 11,413 26,103

Interest Expenses 2,493 -

Operating Leases - 65,825

Seminar Expenses 9,922 -

Staff Expenses 6 502,037 461,736

Scholarships 96,000 96,000

Utilities and Service Charges 31,855 26,685

Other Expenses 187,154 192,921

1,374,499 1,297,376

Surplus before contribution to consolidated fund 250,518 12,682

Contribution to Singapore Government Consolidated Fund 7 42,588 2,156

Total comprehensive surplus for the year 207,930 10,526



BALANCE SHEET

As at 31 December 2019


6

Note

2019

S$

2018

S$

Non-current asset

Plant and Equipment 8 22,932 28,169

Right of Use Assets 15 285,353 -

Investment 9 2,964,000 2,964,000

3,272,285 2,992,169

Current assets

Other Receivables 10 320,224 42,726

Fixed Deposits with Financial Institution 11 2,300,000 2,300,000

Cash and Cash Equivalents 12 453,528 401,022

Total current asset 3,073,752 2,743,748

Total assets 6,346,037 5,735,917

Equity

Accumulated Surplus 5,128,223 4,925,911

Net equity 5,128,223 4,925,911

Non-Current liabilities

Lease Liabilities 15 285,942 -

Current liabilities

Other Payables and Accruals 13 301,997 201,864

Advance Received 14 629,875 608,142

Total current liabilities 931,872 810,006

Total equity and liabilities 6,346,037 5,735,917



STATEMENT OF CHANGES IN ACCUMULATED FUND



7

Accumulated

Surplus

S$

2019

Beginning of financial year 4,925,911

Effect of adopting FRS 116 lease (5,618)

Beginning of financial year (restated) 4,920,293

Total comprehensive surplus for the year 207,930

End of financial year 5,128,223

2018

Beginning of financial year 4,915,385

Total comprehensive surplus for the year 10,526

End of financial year 4,925,911



STATEMENT OF CASH FLOWS



8

Notes

2019

S$

2018

S$

Cash flows from operating activities

Surplus for the year 250,518 12,682

Adjustments for:

Amortisation – right of use assets 55,982 -

Depreciation on plant and equipment 8 10,283 4,661

Interest expense 2,493 -

Interest incomes (124,506) (103,059)

194,770 (85,716)

Changes in working capital:

Other receivables (277,498) (6,553)

Other payables and accruals 121,866 65,980

Net cash used in operating activities 39,138 (26,289)

Cash flows from investing activity

Fixed deposits place - 1,000,000

Investments - (1,004,000)

Interest received 124,506 103,059

Purchase of plant and equipment 8 (5,046) (19,702)

Net cash generated from investing activities 119,460 79,357

Cash flows from financing activity

Contribution to consolidated fund (42,588) -

Interest paid (2,493) -

Payment of principal portion of lease liabilities (61,011) -

Net cash used in financing activity (106,092) -

Net increase in cash and cash equivalents 52,506 53,068

Cash and cash equivalents at beginning of the year 401,022 347,954

Cash and cash equivalents at end of the year 12 453,528 401,022



NOTES TO THE FINANCIAL STATEMENTS


9

1. General information

The Professional Engineers Board was established in 1970 under Professional Engineers Act, Chapter

253.

The registered office and principal place of operations of the Board is located at 52 Jurong Gateway road

#07-03, Singapore 608550.

The principal activities of the Board are those of administering the Board‟s membership, Register of

Professional Engineers and licensing of professional engineering corporations There has been no

significant change in the nature of this activity during the financial year.

2. Significant Accounting Policies

2.1 Basis of Preparation

These financial statements have been prepared in accordance with Statutory Board Financial Reporting

Standards (“SB-FRS”) under the historical cost convention, except as disclosed in the accounting policies

below.

The preparation of financial statements in conformity with SB-FRS requires management to exercise its

judgement in the process of applying the Board‟s accounting policies. It also requires the use of certain

critical accounting estimates and assumptions. The areas involving a higher degree of judgement or

complexity, or areas where assumptions and estimates are significant to the financial statements are

disclosed in Note 3.

The financial statements are presented in Singapore Dollars (S$) which is the Board‟s functional currency.

2.2 Changes in accounting policies

The accounting policies adopted are consistent with those of the previous financial year except

that in the current financial year, the Board has adopted all the new and amended standards which

are relevant to the Board and are effective for annual financial periods beginning on or after 1

January 2019. Except for the adoption of SB-FRS 116 Leases described below, the adoption of

these standards did not have any material effect on the financial performance or position of the

Board

SB-FRS 116 Leases

SB-FRS 116 supersedes SB-FRS 17 Leases, INT SB-FRS 104 Determining whether an Arrangement

contains a Lease, INT SB-FRS 15 Operating Leases-Incentives and INT SB-FRS 27 Evaluating the

Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for

the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most

leases on the statement of financial position.





10

2. Significant Accounting Policies (continued)

2.2 Changes in accounting policies (continued)

SB-FRS 116 Leases (continued)

The Board adopted SB-FRS 116 using the modified retrospective method of adoption with the date of

initial application of 1 January 2019. Under this method, the standard is applied retrospectively with the

cumulative effect of initially applying the standard recognised at the date of initial application as an

adjustment to the opening balance of retained earnings. The Board elected to use the transition practical

expedient to not reassess whether a contract is, or contains a lease at 1 January 2019. Instead, the Board

applied the standard only to contracts that were previously identified as leases applying SB-FRS 17 and

INT SB-FRS 104 at the date of initial application.

The effect of adopting SB-FRS 116 as at 1 January 2019 was as follows:

Increase/(decrease)

S$

Right of use assets 51,153

Lease liabilities 56,771

Retained earnings (5,618)

The Board has lease contracts for buildings. Before the adoption of SB-FRS 116, the Board classified each

of its leases (as lessee) at the inception date as either a finance lease or an operating lease. The accounting

policy prior to 1 January 2019 is disclosed in Note 2.15.

Upon adoption of SB-FRS 116, the Board applied a single recognition and measurement approach for all

leases except for short-term leases and leases of low-value assets. The accounting policy beginning on and

after 1 January 2019 is disclosed in Note 2.15. The standard provides specific transition requirements and

practical expedients, which have been applied by the Board.

(a) Leases previously accounted for as operating leases

The Board recognised right-of-use assets and lease liabilities for those leases previously classified

as operating leases, except for short-term leases and leases of low-value assets. The right-of-use

assets for the leases were recognised based on the carrying amount as if the standard had always

been applied, using the incremental borrowing rate at the date of initial application. Lease liabilities

were recognised based on the present value of the remaining lease payments, discounted using the

incremental borrowing rate at the date of initial application.

The Board also applied the available practical expedients wherein it:

• used a single discount rate to a portfolio of leases with reasonably similar characteristics;

• relied on its assessment of whether leases are onerous immediately before the date of initial

application as an alternative to performing an impairment review;

• applied the short-term leases exemption to leases with lease term that ends within 12 months

of the date of initial application;

• excluded the initial direct costs from the measurement of the right-of-use asset at the date of

initial application; and





11


2.2 Changes in accounting policies (continued)

SB-FRS 116 Leases (continued)

(a) Leases previously accounted for as operating leases (continued)

• used hindsight in determining the lease term where the contract contained options to

extend or terminate the lease.

Based on the above, as at 1 January 2019:

• right-of-use assets of $26,195 were recognised;

• additional lease liabilities of $26,922 were recognised;

• the net effect of these adjustments of $727 had been adjusted to retained earnings.

Comparative information is not restated.

(b) Leases previously accounted for as operating leases

The lease liabilities as at 1 January 2019 can be reconciled to the operating lease commitments as of

31 December 2018, as follows:

S$

Operating lease commitments as at 31 December 2018 58,018

Weighted average incremental borrowing rate as at 1 January 2019 5.25%

Discounted operating lease commitments as at 1 January 2019 56,771

Lease liabilities as at 1 January 2019 56,771

New or amended Standards and Interpretations after 1 January 2020

Certain new accounting standards and interpretations have been published that are mandatory for

accounting years after 1 January 2020.

The Board is currently assessing the impact on the adoption of the new standards in the period of

initial application.

2.3 Foreign currency transactions and balance

Transactions in foreign currencies are measured in the functional currency of the Board and are recorded on

initial recognition in the functional currency at exchange rates approximating those ruling at the transaction

dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of

exchange ruling at the reporting date. Non-monetary items that are measured in terms of historical cost in a

foreign currency are translated using the exchange rates as at the dates of the initial transactions.

Exchange differences arising on the settlement of monetary items or on translating monetary items at the

end of the reporting period are recognised in profit or loss.





12


2.4 Revenue recognition

Revenue is measured based on the consideration to which the Board expects to be entitled in exchange for

transferring promised goods or services to a customer, excluding amounts collected on behalf of third

parties.

Revenue is recognised when the Board satisfies a performance obligation by transferring a promised good

or service to the customer, which is when the customer obtains control of the good or service. A

performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised

is the amount allocated to the satisfied performance obligation.

Government Grant

Income from the government grants are recognized upon receipt.

Registration Fee

Registration fee income is recognized when the applicant is registered as a member with the entity.

Renewal and Licensing Fee

Renewal and licensing fee income is recognized on amortisation basis.

Examination Fee and Other Fee

Examination and other fee income are recognized in the period in which the services are rendered.

Interest Income

Interest income is recognized on accrual basis.

2.5 Employee compensation

Employee benefits are recognised as an expense, unless the cost qualifies to be capitalised as an

asset.

(i) Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Board pays fixed

contributions into separate entities such as the Central Provident Fund on a mandatory, contractual

or voluntary basis. The Board has no further payment obligations once the contributions have been

paid.

(ii) Short-term compensated absences

Employee entitlements to annual leave are recognised when they accrue to employees. A provision

is made for the estimated liability for annual leave as a result of services rendered by employees up

to the balance sheet date.

2.6 Income tax

The income of the Board is exempted from income tax under Section 13(1) (e) of the Singapore Income

Tax Act.





13


2.7 Contribution to consolidated fund

The Statutory Corporations (Contribution to Consolidated Fund) Act, Chapter 319A and Ministry of

Finance mandates all Statutory Corporations contribute a percentage of its annual surplus income to the

Singapore Government Consolidated Fund. Such contributions are accrued for in the year which the

corresponding surplus income arises.

2.8 Plant and equipment

(i) Measurement

All property, plant and equipment are initially recognised at cost and subsequently carried at cost less

accumulated depreciation and accumulated impairment losses.

The cost of an item of property, plant and equipment includes its purchase price and any costs that

are directly attributable to bringing the asset to the location and condition necessary for it to be

capable of operating in the manner intended by Management.

(ii) Depreciation

Depreciation on property, plant and equipment is calculated using the straight-line method to allocate

their depreciable amounts over their estimated useful lives. The estimated useful lives are as follows:

Useful life

Office furniture 8 years

Office equipment 5 years

Computer 3 years

Photo and printing equipment 8 years

The residual values and useful lives of property, plant and equipment are reviewed, and adjusted as

appropriate, at each reporting date. The effects of any revision of the residual values and useful lives

are included in the statement of comprehensive income for the financial year in which the changes

arise.

(iii) Subsequent expenditure

Subsequent expenditure relating to property, plant and equipment that has already been recognised is

added to the carrying amount of the asset only when it is probable that future economic benefits

associated with the item will flow to the Board and the cost of the item can be measured reliably.

Other subsequent expenditure is recognised as repair and maintenance expenses in the statement of

comprehensive income during the financial year in which it is incurred.

(iv) Disposal

On disposal of an item of property, plant and equipment, the difference between the net disposals

proceeds and its carrying amount is taken to the statement of comprehensive income.





14


2.9 Impairment of non-financial assets

The Board assesses at each reporting date whether there is an indication that an asset may be impaired. If

any indication exists, (or, where applicable, when an annual impairment testing for an asset is required),

the Board makes an estimate of the asset‟s recoverable amount.

An asset‟s recoverable amount is the higher of an asset‟s or cash-generating unit‟s fair value less costs of

disposal and its value in use and is determined for an individual asset, unless the asset does not generate

cash inflows that are largely independent of those from other assets or group of assets. Where the carrying

amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered

impaired and is written down to its recoverable amount.

Impairment losses are recognised in profit or loss.

A previously recognised impairment loss is reversed only if there has been a change in the estimates used

to determine the asset‟s recoverable amount since the last impairment loss was recognised. If that is the

case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed

the carrying amount that would have been determined, net of depreciation, had no impairment loss been

recognised previously. Such reversal is recognised in profit or loss.

2.10 Financial assets

The Board classifies its financial assets into the following measurement categories

Amortised cost

Fair value through profit or loss (FVPL)

The classification depends on the Board‟s business model for managing the financial assets as well as the

contractual terms of the cash flows of the financial assets.

Financial assets with embedded derivatives are considered in their entirety when determining whether their

cash flows are solely payment of principal and interest.

The Board reclassifies debt instruments when and only when its business model for managing those assets

changes.

(i) At initial recognition

At initial recognition, the Board measures a financial asset at its fair value plus, in the case of a

financial asset not at fair value through profit or loss, transaction costs that are directly attributable

to the acquisition of the financial assets. Transaction costs of financial assets carried at fair value

through profit or loss are expensed in profit or loss.





15


2.10 Financial assets (continued)

(ii) At subsequent measurement

a) Debt instrument

Debt instruments of the Board mainly comprise of cash and bank deposits, trade and other

receivables.

There are three prescribed subsequent measurement categories, depending on the Board‟s

business model in managing the assets and the cash flow characteristic of the assets. The Board

managed these group of financial assets by collecting the contractual cash flow and these cash

flows represents solely payment of principal and interest. Accordingly, these group of financial

assets are measured at amortised cost subsequent to initial recognition.

A gain or loss on a debt investment that is subsequently measured at amortised cost and is not

part of a hedging relationship is recognised in profit or loss when the asset is derecognised or

impaired. Interest income from these financial assets are recognised using the effective interest

rate method.

The Board assesses on forward looking basis the expected credit losses associated with its debt

instruments carried at amortised cost.

For trade and other receivable, the Board applied the simplified approach permitted by the SB-

SB-FRS 109, which requires expected lifetime losses to be recognised from initial recognition

of the receivables.

For cash and bank deposits, the general 3 stage approach is applied. Credit loss allowance is

based on 12-month expected credit loss if there is no significant increase in credit risk since

initial recognition of the assets. If there is a significant increase in credit risk since initial

recognition, lifetime expected credit loss will be calculated and recognised.

b) Equity instrument

On initial recognition of an investment in equity instrument that is not held for trading, the

Board may irrevocably elect to present subsequent changes in fair value in other comprehensive

income which will not be reclassified subsequently to profit or loss. Dividends from such

investments are to be recognised in profit or loss when the Board‟s right to receive payments is

established. For investments in equity instruments which the Board has not elected to present

subsequent changes in fair value in other comprehensive income, changes in fair value are

recognised in profit or loss.

(iii) Derecognition

A financial asset is derecognised where the contractual right to receive cash flows from the asset has

expired. On derecognition of a financial asset in its entirety, the difference between the carrying

amount and the sum of the consideration received and any cumulative gain or loss that had been

recognised in other comprehensive income for debt instruments is recognised in profit or loss.





16


2.11 Impairment of financial assets

The Board recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at

FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the

contract and all the cash flows that the Board expects to receive, discounted at an approximation of the

original effective interest rate. The expected cash flows will include cash flows from the sale of collateral

held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase

in credit risk since initial recognition, ECLs are provided for credit losses that result from default events

that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there

has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for

credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a

lifetime ECL).

For trade receivables, the Board applies a simplified approach in calculating ECLs. Therefore, the Board

does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at

each reporting date. The Board has established a provision matrix that is based on its historical credit loss

experience, adjusted for forward-looking factors specific to the debtors and the economic environment

which could affect debtors‟ ability to pay.

The Board considers a financial asset in default when contractual payments are 60 days past due. However,

in certain cases, the Board may also consider a financial asset to be in default when internal or external

information indicates that the Board is unlikely to receive the outstanding contractual amounts in full

before taking into account any credit enhancements held by the Board. A financial asset is written off when

there is no reasonable expectation of recovering the contractual cash flows.

2.12 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on

hand, cash at bank and deposits with financial institutions which are subject to an insignificant risk of

change in value. For cash subjected to restriction, assessment is made on the economic substance of the

restriction and whether they meet the definition of cash and cash equivalents.

2.13 Other payables

Other payables represent liabilities for goods and services provided to the Board prior to the end of

financial year which are unpaid. They are classified as current liabilities if payment is due within one year

or less. Otherwise, they are presented as non-current liabilities. Other payables are initially recognised at

fair value, and subsequently carried at amortised cost using the effective interest method.

2.14 Provisions

Provisions for legal claims are recognised when the Board has a present legal or constructive obligation as

a result of past events, it is more likely than not that an outflow of resources will be required to settle the

obligation and the amount has been reliably estimated. Provisions are not recognised for future operating

losses.





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2.15 Leases

The accounting for leases before 1 January 2019 are as follows:

When the Board is the lessee:

The Board leases the factory and warehouse under operating leases from non-related parties.

Lessee – Operating leases

Leases where substantially all risks and rewards incidental to ownership are retained by the lessors are

classified as operating leases. Payments made under operating leases (net of any incentives received from

the lessors) are recognised in statement of comprehensive inome on a straight-line basis over the period of

the lease. Contingent rents are recognised as an expense in statement of comprehensive income when

incurred.

The accounting for leases after 1 January 2019 are as follows:

The Board assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract

conveys the right to control the use of an identified asset for a period of time in exchange for

consideration.

When the Board is the lessee:

The Board applies a single recognition and measurement approach for all leases, except for short-term

leases and leases of low-value assets. The Board recognises lease liabilities representing the obligations to

make lease payments and right-of-use assets representing the right to use the underlying leased assets.

Right-of-use assets

The Board recognises right-of-use assets at the commencement date of the lease (i.e. the date the

underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated

depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of

right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease

payments made at or before the commencement date less any lease incentives received. Right-of-use assets

are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of

the assets.

If ownership of the leased asset transfers to the Board at the end of the lease term or the cost reflects the

exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The

right-of-use assets are also subject to impairment. The accounting policy for impairment is disclosed in

Note 2.9.





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2.15 Leases (continued)

The accounting for leases after 1 January 2019 are as follows: (continued)

Lease liabilities

At the commencement date of the lease, the Board recognises lease liabilities measured at the present

value of lease payments to be made over the lease term. The lease payments include fixed payments

(including in-substance fixed payments) less any lease incentives receivable, variable lease payments that

depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease

payments also include the exercise price of a purchase option reasonably certain to be exercised by the

Board and payments of penalties for terminating the lease, if the lease term reflects the Board exercising

the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as

expenses (unless they are incurred to produce inventories) in the period in which the event or condition

that triggers the payment occurs.

In calculating the present value of lease payments, the Board uses its incremental borrowing rate at the

lease commencement date because the interest rate implicit in the lease is not readily determinable. After

the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and

reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if

there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future

payments resulting from a change in an index or rate used to determine such lease payments) or a change

in the assessment of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Board applies the short-term lease recognition exemption to its short-term leases of machinery (i.e.

those leases that have a lease term of 12 months or less from the commencement date and do not contain a

purchase option). It also applies the lease of low-value assets recognition exemption to leases of office

equipment that are considered to be low value. Lease payments on short-term leases and leases of low

value assets are recognised as expense on a straight-line basis over the lease term.

2.16 Related party

A party is considered to be related to the Board if:

a) The party, directly or indirectly through one or more intermediaries,

i. control, is controlled by, or is under common control with, the Board;

ii. has an interest in the Board that gives it significant influence over the Board; or

iii. has joint control over the Board;

b) The party is an associated entity;

c) The party is a jointly-controlled entity;

d) The party is a member of the key management personnel of the Board or its parent;

e) The party is a close member of the family of any individual referred to in (a) or (d);

f) The party is an entity that is controlled, jointly controlled or significantly influenced by or for which

significant voting power in such entity resides with, directly or indirectly, any individual referred to in

(d) or (e).





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3. Critical accounting estimates, assumption and judgements

Estimates, assumptions and judgements are continually evaluated and are based on historical experience

and other factors, including expectations of future events that are believed to be reasonable under the

circumstances

Critical accounting estimates and assumptions

Impairment of Loans and Receivables

The Board‟s Management review its loans and receivables for objective evidence of impairment annually.

Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy, and

default or significant delay in payments are considered objective evidence that a receivable is impaired. In

determining this, the Board‟s Management has made judgments as to whether there is observable data

indicating that there has been a significant change in the payment ability of the debtor, or whether there

have been significant changes with adverse effect in the technological, market, economic or legal

environment in which the debtor operates in.

Where there is objective evidence of impairment, the Board‟s Management has made judgments as to

whether an impairment loss should be recorded as an expense. In determining this, the Board‟s

Management has used estimates based on historical loss experience for assets with similar credit risk

characteristics. The methodology and assumptions used for estimating both the amount and timing of

future cash flows are reviewed regularly to reduce any differences between the estimated loss and actual

loss experienced.

Depreciation of Property, Plant and Equipment

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. The

Board‟s Management estimates the useful lives of these property, plant and equipment to be within 3 to 8

years. Changes in the expected level of usage and technological developments could impact the useful

economic lives and the residual values, if any, of these assets, therefore future depreciation charges could

be revised.

Investments

The Board holds corporate variable rate notes that are not traded in an active market with a carrying

amount of S$2,964,000. The Board has used discounted cash flow analysis for valuing these financial

assets and made estimates about expected future cash flow and credit spreads. If the credit spread used in

the discounted cash flow analysis had been higher/lower by 1% from the Board‟s management‟s estimated,

the Board‟s carrying amount of available-for-sale financial assets would have been higher/lower by

S$29,640.

Impairment of Property, Plant and Equipment

The Board‟s Management determines whether property, plant and equipment are impaired at least on an

annual basis. This required an estimation of the expected future cash flows from the property, plant and

equipment.





20

4. Interest income

2019 2018

S$ S$

Bank balances 284 458

Debt securities 82,700 64,073

Fixed deposits 41,522 38,528

124,506 103,059

5. Staff expenses

2019 2018

S$ S$

Salaries and bonuses 433,246 388,850

Central Provident Fund contributions 68,791 72,886

502,037 461,736

6. Contribution to consolidated fund

The Statutory Corporations (Contributions to Consolidated Fund) Act, Chapter 319A requires that the

Board contribute part of its annual excess of income over expenditure to a Consolidated Fund (“Fund”).

This Fund belongs to Singapore and is administered by the Government in accordance with the

Constitution of The Republic of Singapore.

2019 2018

S$ S$

Contribution to Consolidated Fund at 17% (2018: 17%) of net surplus

income for the financial year

42,588

2,156





21

7. Plant and equipment

Office

Furniture

Office

Equipment Computers

Photo &

printing

equipment Total

S$ S$ S$ S$ S$

2019

Cost

At 1 January 2,305 15,742 38,755 9,288 66,090

Additions 552 4,494 - - 5,046

At 31 December 2,857 20,236 38,755 9,288 71,136

Accumulated

depreciation

At 1 January 2,305 10,262 20,710 4,644 37,921

Depreciation 52 2,502 6,568 1,161 10,283

At 31 December 2,357 12,764 27,278 5,805 48,204

Net book value

At 31 December 500 7,472 11,477 3,483 22,932

Office

Furniture

Office

Equipment Computers

Photo &

printing

equipment Total

S$ S$ S$ S$ S$

2018

Cost

At 1 January 2,305 14,950 19,845 9,288 46,388

Additions - 792 18,910 - 19,702

Disposal - - - - -

At 31 December 2,305 15,742 38,755 9,288 66,090

Accumulated

depreciation

At 1 January 2,305 8,249 19,223 3,483 33,260

Depreciation - 2,013 1,487 1,161 4,661

Disposal - - - - -

At 31 December 2,305 10,262 20,710 4,644 37,921

Net book value

At 31 December - 5,480 18,045 4,644 28,169





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8. Investments

2019 2018

S$ S$

Unquoted debt securities (Singapore) 2,964,000 2,964,000

Debt securities bear fixed rate interest at 2.5% to 3.1% (2018: 2.5% to 3.1%) per annum and mature in

year 2021, 2024 and 2025.

9. Other receivables

2019 2018

S$ S$

Interest income receivable 49,987 23,547

Prepayment and other debtors 296 19,179

Grant receivable 269,941 -

320,224 42,726

Other receivables are denominated in Singapore Dollars. No interest is charged on receivables.

10. Fixed deposits with financial institutions

All fixed deposits mature within one year and earn interest at rates ranging from 1.1% to 2% (2018: 1.2 to

1.5%) per annum.

11. Cash and cash equivalents

2019 2018

S$ S$

Cash and bank balances 453,528 401,022

Cash and bank balances are denominated in Singapore Dollars.





23

12. Other payables and accruals

2019 2018

S$ S$

Accrued operating expenses 259,409 168,846

Accrued contribution to Consolidated Fund 42,588 33,018

301,997 201,864

Other payables and accruals are denominated in Singapore Dollars.

13. Advance received

2019 2018

S$ S$

Registration fees received in advance 18,200 17,000

Renewal fees received in advance 501,350 487,400

Company licensing fees received in advance 86,625 82,167

Examination fees received in advance 15,300 12,275

Other advance payments received 8,400 9,300

629,875 608,142

15. Leases

Board as a lessee

The Board has lease contracts for land, buildings and motor vehicles. The Board‟s obligations under these

leases are secured by the lessor‟s title to the leased assets. The Board is restricted from assigning and

subleasing the leased assets. There are several lease contracts that include extension options which are

further discussed below.

The Board also has certain leases of machinery with lease terms of 12 months or less and leases of office

equipment with low value. The Board applies the „short-term lease‟ and „lease of low-value assets‟

recognition exemptions for these leases.





24

15. Leases (continued)

(a) Carrying amounts of right-of-use assets classified within property, plant and equipment

Leasehold

buildings Total

S$ S$

Cost

At 1 January 2019 - -

Effect of adopting SB-FRS 116 279,020 279,020

At 1 January 2019 (restated) 279,020 279,020

Addition 290,181 290,181

At 31 December 2019 569,201 569,201

Accumulated depreciation

At 1 January 2019 - -

Effect of adopting SB-FRS 116 227,866 227,866

At 1 January 2019 (restated) 227,866 227,866

Addition 55,982 55,982

At 31 December 2019 283,848 283,848

Carrying amount

At 31 December 2019 285,353 285,353

(b) Lease liabilities

The carrying amounts of lease liabilities are:

2019

S$

Lease liabilities

- current 52,349

- non-current 233,593

A reconciliation of liabilities arising from financing activities is as follows:

2019

1

January

2019

Effects of

adopting

SB-FRS

116 Lease

1 January

2019

(Restated)

Cash

flows

Non-cash changes 31

December

2019

Acquisition Accretion of

interests Others

S$ S$ S$ S$ S$ S$ S$ S$

Current:

-Lease

liabilities - 56,771 56,771 (63,504)

290,182 2,493 - 285,942





25

15. Leases (continued)

(c) Amounts recognised in profit or loss

2019

S$

Depreciation of right-of-use assets 55,982

Interest expense on lease liabilities 2,493

Total amount recognised in profit or loss 58,475

(d) Total cash outflow

The Board had total cash outflows for leases of S$61,011 in 2019.

(e) Extension options

The Board has several lease contracts that include extension options. These options are negotiated by

management to provide flexibility in managing the leased-asset portfolio and align with the Board‟s

business needs. Management exercises significant judgement in determining whether these extension

options are reasonably certain to be exercised.

16. Related party transactions

Compensation of Board‟s Management members representing key management personnel was as

follows:

2019 2018

S$ S$

Board‟s Management members‟ remuneration, honorarium and

other short-term benefits 58,705 61,200

58,705 61,200

17. Commitment

Operating lease commitments – as lessee

The Board leases warehouses and equipment under non-cancellable operating lease agreements. These

leases have varying terms.

As at 31 December 2018, the future minimum lease payables under non-cancellable operating leases

contracted for but not recognised as liabilities, are as follows:

S$

Not later than one year 58,018





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17. Commitment (continued)

Minimum lease payments recognised as an expense in profit or loss for the financial year ended 31

December 2018 amounted to $65,825.

As disclosed in Note 2.2, the Board has adopted SB-FRS 116 on 1 January 2019. These lease payments

have been recognised as right-of-use assets and lease liabilities on the statement of financial position as at

31 December 2019, except for short-term and low-value leases.

18. Fair value

(i) Fair value hierarchy

The Board categories their value measurements using a fair value hierarchy that is dependent on the

valuation inputs used as follows: -

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset

or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: Inputs for the asset or liability that are not based on observable market data

(unobservable inputs).

Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in

the same level of the fair value hierarchy as the lowest level input that is significant to the entire

measurement.

(ii) Assets measured at fair value

There is no asset that is measured at fair value.

(iii) Assets and liabilities not measured at fair value

Cash and cash equivalents, other payables

The carrying amounts of these balances approximate their fair values due to the short-term nature of

these balances.





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19. Financial risk management objectives and policies

The Board is exposed to financial risks arising from its operations and the use of financial instruments.

The key financial risks are credit risk, interest rate risk and liquidity risk. The Board ‟s management

reviews and agrees on policies for managing each of these risks and they are summarised below:

Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a

loss to the Board.

The Board has adopted a policy of only dealing with creditworthy counterparties. The Board performs

ongoing credit evaluation of its counterparties‟ financial condition and generally do not require a

collateral.

Exposure to credit risk

The Board has no significant concentration of credit risk. The Board has credit policies and procedures in

place to minimise and mitigate its credit risk exposure.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of

changes in market interest rates. As the Board has no significant interest-bearing assets, the Board‟s income

is substantially independent of changes in market interest rates.

The management monitors movements in interest rates to ensure deposits are placed with financial

institutions offering optimal rates of return.

Liquidity risk

Liquidity risk is the risk that the Board will encounter difficulty in meeting financial obligations as they

fall due.

The management exercises prudence in managing its operating cash flows and aims at maintaining a high

level of liquidity at all times.

All financial liabilities of the Board are repayable on demand or mature within one year.

20. Financial instrument by category

At the reporting date, the aggregate carrying amounts of financial assets at amortised cost and financial

liabilities at amortised cost were as follows:

2019 2018

S$ S$

Financial assets measured at amortised cost

Fixed deposit with financial institutions 2,300,000 2,300,000

Other receivables 320,224 42,726

Cash and cash equivalents 453,528 401,022

Total financial assetss measured at amortised cost 3,073,752 2,743,748

Financial liabilities measured at amortised cost

Other payables and accruals 301,997 201,864

Total financial liabilities measured at amortised cost 301,997 201,864





28

21. Capital risk management

The Board’s objectives when managing capital are to safeguard the Board’s ability to continue as a

going concern and to maintain an optimal capital structure so as to maximize stakeholder value. In

order to maintain or achieve an optimal capital structure, the Board may obtain new borrowings or

sell assets to reduce borrowings.

The Board is not subject to externally imposed capital requirement. The Board’s Management

monitors capital based on a gearing ratio. There has been no change in the objectives, policies abd

processes since last year.

The gearing ratio is calculated as debt divided by total capital. Debt comprises of payables. Total

capital is calculated as total funds plus debt.

2019 2018

S$ S$

Debt 931,872 810,006

Total Funds 5,128,223 4,925,911

Total Capital 6,060,095 5,735,917

Gearing Ratio 15.4% 14.1%

22. Authorisation of financial statements

The financial statements of the Professional Engineers Board for the year ended 31 December 2019 were

authorised for issue by the Board on 27 April 2020.

Documents

Professional Engineers Board SingaporeThe Examination Committee of the Board, chaired by Board member Er. Dr Chiew Sing Ping, held 3 meetings in 2019 and oversaw the conduct of the